Jamaica’s new tax on sugary non-alcoholic drinks has sent ripple effects across the local beverage manufacturing industry, with the country’s leading scientific research body stepping in to help producers adapt to the new regulatory environment while keeping products accessible and enjoyable for consumers.
Starting May 1 this year, the Jamaican government implemented a Special Consumption Tax (SCT) of $0.02 per millilitre on non-alcoholic sweetened beverages (NASBs) that contain added sugar or caloric sweeteners, introduced as a revenue measure for the 2026/2027 national budget. Beyond boosting government revenue, the policy also carries a key public health goal: cutting rates of non-communicable diseases (NCDs) that impact a large share of the Jamaican population.
In response to the policy shift, Dr. Charah Watson, Executive Director of Jamaica’s Scientific Research Council (SRC), is calling on all local beverage manufacturers to reformulate their existing products to cut sugar content. This adjustment, she argues, will not only bring businesses into compliance with the new tax regime but also deliver healthier, more affordable options for consumers without sacrificing the familiar flavor profiles customers expect.
To smooth this transition, the SRC is offering a full suite of tailored support services to manufacturers of all sizes. “We’re supporting manufacturers in helping them reformulate, identify appropriate sugar alternatives and conduct the necessary quality testing,” Watson explained in an interview with Observer Online. “We can also assist with sensory evaluation with their target market, so as they adjust their recipes, we can directly measure how consumers respond to the updated products.”
Watson noted that the push for lower-sugar beverages is not a sudden change. Larger local manufacturers have already been moving in this direction since 2018, when public discussions around healthier beverage options for school programs first gained traction. “There have been companies, as far back as 2018 and 2019, that have consistently engaged the SRC to support them in launching lower-sugar products that outperform previous industry standards,” she said.
Now, the council is working to extend this support to small and medium-sized enterprises (SMEs) and micro-manufacturers, which often lack the resources and agility of larger industry players to adapt to new regulations quickly. “Many smaller producers have not yet taken advantage of the available support, and we want to raise awareness that these services exist to help them stay competitive, not get left behind,” Watson added.
Priced to be accessible for smaller businesses, the SRC’s reformulation services start at approximately $65,000, with final costs varying based on the complexity of the product being adjusted. “The SRC was created exactly for this purpose: to support small and micro enterprises so that they can actively participate in the marketplace and continue to drive the local economy,” Watson noted.
Reformulation is far from a simple quick fix, Watson emphasized. Instead, it requires a structured, gradual process that slowly reduces sugar content step-by-step, allowing consumers’ taste palates to adapt to the change over time. Clear communication with customers is also a critical part of the transition process, she added. Manufacturers are encouraged to update product labels to inform buyers of the recipe change, avoiding unmet expectations from customers accustomed to the original product’s flavor. “It’s all about how you manage the transition, and how you effectively communicate that change to your customer base,” Watson explained.
To further speed up adoption of lower-sugar products, the SRC has also developed pre-made, ready-to-use low-sugar beverage formulations that manufacturers can license and bring to market immediately. These existing recipes include flavored waters and functional drinks, all designed to meet the new regulatory sugar standards while offering consumers healthier alternatives to traditional sugary sodas and sweetened beverages.
For both consumers and producers, Watson argues that sugar reformulation delivers mutual benefits: it supports the government’s public health goal of reducing NCD rates, while helping businesses retain their market position and competitiveness under the new tax framework. By taking advantage of the SRC’s support, local beverage makers can navigate the regulatory shift successfully while meeting evolving consumer demand for healthier options.